http://www.engadget.com/entry/1234000597043723/ Ballmer: ...so if you get those two, you’ll get a lot of other stuff. J. Allard touched on the issue last night on synchronization with the iPod and the PSP that the Xbox 360 is going to have, but he didn’t really explain much about what form that would take.
Yep, it just looks like a USB memory stick to Windows XP anyways, it'll probably be the same for this.
I think the most interesting point in that article is where they're talking about DVD/Blu-ray. Sounds like there's going to be another one along shortly with a new drive. Doesn't make me want to rush out and buy one if I have to get another in 6 months time in order to play the latest games on blu-ray.
The 360 isn't going to ship with a Blu-Ray. As for syncing with the PSP, that is for music/movies only. -hl718